ARIZONA INDIAN NATIONS: Shaping Arizonas Future

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ARIZONA INDIAN NATIONS Shaping Arizonas Future

• Presented by
• Joan Timeche
• NNI Assistant Director

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Long-Hair Katsina dancers, painting by Gilbert
Timeche
My daughter, Briana, in traditional Hopi dress.
Hopi Buffalo dancers
Village of Old Oraibi, Hopi Reservation, 1980s
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Presentation Topics

• Native Nation Building
• Building Indian Economies
• The Arizona American Indian
• Demographics
• Traditional Economies
• Modern Economies

• Economic Impact of AZ Indian Nations
• Challenges Opportunities
• Questions Answers

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Sources Bureau of Indian Affairs and US Census
2000
NATIVE NATIONS IN THE UNITED STATES

• 562 federally recognized tribes in 31 states
• gt 2.5 million Native Americans (1.5 of US
  population)
• 55.7 million acres of trust land across the U.S.

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The Puzzle
Native Nation Building
What explains the success that some American
Indian nations have had in building sustainable,
self-determined economies?
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Characteristics of theNation Building
Approachto Economic Development

• Sovereignty in practice
• Effective governing institutions
• Cultural match
• Strategic orientation
• Leadership

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Development Planning and Process in the
Nation-Building Approach
6. Implement them
Leadership
5. Choose projects
4. Craft development policies
3. Identify strategic priorities/concerns
2. Build capable institutions
1. Claim jurisdiction (decision-making power)
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• 21 federally recognized, diverse and tribes
• gt 236,000 Native Americans reside on reservations
  (gt 255,000 statewide)
• AZ tribes control gt 14.7 million acres or 28
  percent of Arizonas overall land base and vast
  natural resource holdings
• Forests
• Minerals
• Scenic natural wonders
• Millions of acre feet of water

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DEMOGRAPHICS (2000 U.S. Census)

• 236,876 reside on reservations, approximately 5
  percent of the states population
• Per capita income
• 4,970 to 16,635,
• 8 reservations had poverty levels of 40 percent
  or more
• Unemployment rates range from 0 to 37 percent,
  which is unusually low and may be inaccurate, as
  most Indian nations cite rates double and triple
  those rates

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TRADITIONAL ECONOMIES

• Pre-European contact . . .
• Thriving, self-sufficient life ways

• Sophisticated agricultural technologies and
  complex societies

• Barter economy
• As tribes progressed into 20th century, became
  more acculturated, changed to cash economy,
  traditional life-ways changed

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MODERN ECONOMIES

• Varying levels of economic activity, much
  attributable to the geography and uniqueness of
  each tribe (see Industries table)
• Language, culture, customs as well as
  institutions of governance impact the local
  political, social, economic environment and pace
  at which it develops
• On most reservations, businesses and development
  are owned and controlled by the tribal government
• In 1992, only 0.64 percent of all firms in AZ
  were Native American owned firms. Does not
  include micro enterprises -- the invisible
  economy.

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• Gaming - the single most important catalyst for
  Indian nations. Some 2005 AZ statistics
• 21 tribes have compacts
• 15 tribes have casinos, 2 no longer operate
  casinos, and 6 have machine transfer agreements
• 12,122 slot machines and 441 tables games

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Use of Gaming Proceeds

• Gaming revenues are directed towards improving
  the standard of living for Native Americans and
  ensuring a better future.
• physical
• health
• education
• social services
• government
• economic diversification

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• Tourism
• Increased interest and volume of tourists
• Opportunity to capture a greater share of
  monetary benefits through sound plans for managed
  and sustainable tourism.

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Sheraton Wild Horse Pass Resort Spa, Gila River
Indian Community
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Modern Economies (contd)

• Utility Authorities -
• Ft. Mojave TON control and own all utilities,
  several are researching the expansion beyond
  water services
• Ft. Mojave SRPMIC serve as regional landfills.
• Telecommunications -
• Ft. Mojave, TON, GRIC, SCAT, Navajo, and Hopi

• Agriculture -
• 14 tribes actively involved in agriculture
• GR farms exports to Pacific Coast companies and
  uses technology in daily operations
• Some have registered tribal herds
• Other Industries
• manufacturing,
• industrial parks,
• mining,
• retail, etc.

Pavilions Shopping Center - Salt River Indian
Community
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ECONOMIC IMPACT
Tribal governments and their people have long
contended that tribal economies make significant
financial contributions to Arizona economy and
its tax revenues. A 1994 study, The Economic
Fiscal Importance of Indian Tribes in Arizona
found

• Estimated 288.2 million in household
  expenditures (1993).
• 90 cents of every 1 goes off the reservation
• Reservation-based enterprises employed both
  Indian and non-Indians and spent approx. 68
  million for goods services (statewide)
  resulting in 3.4 million in state tax revenues.
• Tribal government expenditures estimated at 43
  million (off-res purchases only) and 40.2
  million of direct induced income and 1,704 jobs.

• Federal govt-tribal govt transactions (DOI, HUD,
  IHS, DOL) for Indian programs in 1993 est. at
  523.5 billion, resulting in 8.1 million in AZ
  transaction privilege tax.
• State General Fund expenditures attributable to
  Indian reservation populations estimated at 41.1
  billion in 1993 (corrections, AHCCS, DES, DHS,
  education, youth rehab.)

This data did not include gaming expenditures.
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ECONOMIC IMPACT OF GAMING (2005)

• In 2005, AZ Indian casinos generated 1.349
  billion (a 13.8 percent from previous year).
• 10,000 first tier jobs created, 43 filled by
  Native Americans, 31m in payroll taxes, 110m in
  employee benefits
• 240m spent on in-state vendors for food,
  merchandise, and services

• More than 35m spent by tribes and State on
  oversight, 25m on tribal regulation
• AZ spends 3,000/year per game on regulation,
  compared to Atlantic City (3x larger) avg of 672
  per game per year and Las Vegas (20x larger) avg
  of 118 per game per year

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ECONOMIC IMPACT OF GAMING (2005) (contd)

• With passage of Proposition 202 in 2002, gaming
  revenues are shared with the State of Arizona -
  65.3 million in FY 2004 PLUS 12 with cities and
  counties.

• 2005 Contributions to State of Arizona
• Instructional Improvement Fund - 31.4 m
• Trauma Emergency Services Fund - 15.7 m
• Tourism Fund - 4.5 m
• AZ Wildlife Conservation Fund - 4.5 m
• Problem Gambling - 1.3 m

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TOURISM ON ARIZONA INDIAN LANDS

• Little data available on Indian tourism
• Two recent studies completed by the Center for
  Applied Research make the following projections

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CHALLENGES OPPORTUNITIES

• Natural Resources
• threats of resource depletion
• environmental concerns
• water rights and allocations
• Agriculture - in 1992 accounted for 10 percent of
  total state value of six major crops farmed.
• International markets
• Water resource allocations

• Services
• reducing enormous economic leakage to
  off-reservation communities
• requires development of basic services at
  local/regional locations.
• Tribal Private-Sector Development
• virtually non-existent
• must be developed to meet the needs of a growing
  economy
• success of micro-enterprises could very well lead
  to the growth of a tribal private sector.

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Challenge and Opportunities (continued)

• For successful development to occur, the
  following are critical
• Common vision about the future of the community ?
  a strategic plan for community economic
  development
• Informed consent on use of land ? a land use plan
  or comprehensive plan for planned growth.

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Challenge and Opportunities (continued)

• Land for development - land is our most precious
  resource and often the most controversial.
  Uncertainties can be reduced by adopting
• a zoning ordinance
• an efficient leasing process
• a position on private sector development vs.
  tribal ownership

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Challenge and Opportunities (continued)

• A commitment to development by the local/tribal
  decision-makers. This includes
• a willingness to learn about development
• understanding that you must spend money to make
  money (authorizing the )
• understanding and practicing the separation of
  business and politics

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Challenge and Opportunities (continued)

• Institutional Infrastructure that can support
  development such as -
• a regulatory system that addresses
• rules of commerce (Uniform Commercial Code,
  preference laws, etc.)
• acceptable industries (policy statement)
• controls you want to impose (safety, health, and
  other integrity concerns)
• registration/licensing of business and collection
  of fees taxes

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Challenge and Opportunities (continued)

• a judicial system that
• can enforce regulations
• is fair consistent in resolving disputes
• a business development process that is efficient
  and user friendly
• Resources to develop the physical infrastructure
  (water, sewer, electricity, roads, etc.) as most
  land is either under- or undeveloped

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Challenge and Opportunities (continued)

• The financial resources or willingness to secure
  funds to support development
• Citizen engagement and exercising right to vote
  in tribal, state, and federal elections (Indians
  did not have a right to vote until July 15, 1948
  Supreme Court of Arizona decision.)
• Gathering as much information as possible and
  seeking the necessary assistance to make informed
  decisions

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Challenge and Opportunities (continued)

• Believe in self and in our people. We may not be
  as business savvy as the non-Indian world yet,
  but we have definitely made major strides. Look
  at all our accomplishments - - -
• in exercising our sovereignty
• building our nations
• all while maintaining cultural integrity!!

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It is clearly evident that Indian nations are a
major force in shaping Arizona economy.
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• For further information
• Visit
• www.nni.arizona.edu
• www.arizonanativenet.com
• www.ksg.harvard.edu/hpaied/
• Obtain a
• copy of